What is the difference between a debit note and a credit note as business documents?

      

Distinguish between a debit note and a credit note as business documents.

  

Answers


Maurice
(i) A debit note is issued when a customer fails to return returnable items for example crates, while a credit note is issued when a customer returns chargeable/ returnable items.

(ii) For a debit note, a supplier debits the customer's account while for a credit note, a supplier credits the customer's account.

(iii) A debit note increases the amount on an invoice issued earlier while a credit note reduces the amount on an invoice issued earlier.

(iv) A debit note is used to correct undercharges while a credit note is used to correct overcharge.
maurice.mutuku answered the question on July 12, 2017 at 06:55


Next: In what ways are consumers likely to suffer in a situation where there are no warehouses?
Previous: Explain four factors to consider during development tool for pre-school children.

View More Business Studies Questions and Answers | Return to Questions Index


Exams With Marking Schemes

Related Questions